A technical report by Ahly Faros Securities highlighted the performance of Jehina Food Industries' stock, currently trading at EGP 25. The daily chart shows buying forces maintaining the stock price above an upward trend line that has been in place for four months, representing a moving support level. Despite a series of declining price peaks, the report advises investors to hold onto the stock.
The report sets a stop-loss level at EGP 24.40 and identifies initial resistance at EGP 26.10, followed by EGP 27.40. It warns that a break below EGP 24.40 could lead to a decline to EGP 23.40 and then EGP 22.70. Meanwhile, Egypt's EGX30 index continued its gains at the start of last week, reaching 54,100 points before facing challenges and closing near its lowest weekly level at 53,265 points.
The EGX30 index moved within a narrow range during a Wednesday session, amid relatively low trading volumes, reflecting a temporary hesitation after a rapid rebound of 3,160 points from 50,940 points to test the main resistance at 54,100 points. The focus remains on the support level at 53,000 points, followed by 52,200 points, and the rebound chances remain as long as the index stays above these levels.
A confirmed break above 54,100 points could pave the way for an increase to 54,600 points and then 55,000 points. In a related development, the EGX70 index closed higher at 19,695 points, with a target resistance level at 20,000 points, which, if breached, could lead to a rise to 20,600 points.
Ahly Faros advises short-term traders to adopt a sell-on-rise strategy, while those looking to maintain their positions should carefully select better-performing stocks with lower risks and set stop-loss levels below the lowest levels recorded in the last two sessions. The report emphasizes the importance of monitoring support and resistance levels to make informed investment decisions.
Jehina Food Industries' stock performance is being closely watched by investors, with the company's ability to maintain its position above the upward trend line seen as a positive indicator. The stock's current price of EGP 25 is seen as a key level, with potential for growth if it breaks through the resistance levels.
The Egyptian stock market is experiencing a period of fluctuation, with investors advised to exercise caution and carefully consider their investment strategies. Ahly Faros' recommendations are based on technical analysis and aim to provide guidance to investors looking to make informed decisions.
Key points
- Ahly Faros recommends holding Jehina stock at EGP 25 with a stop-loss level at EGP 24.40.
- The EGX30 index faces resistance at 54,100 points, with support levels at 53,000 and 52,200 points.
- The EGX70 index has a target resistance level at 20,000 points, with potential for growth to 20,600 points.
